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The six forms of deferred (stock) compensation include: Incentive stock options, Non-statutory stock options, Restricted stock, Phantom stock plans, Discount stock options, and Stock appreciation rights.
Incentive stock options entitle executives to purchase their companies’ stock in the future at a predetermined price.
Compared to incentive stock options, non-statutory stock options do not qualify for favorable tax treatment. Executives’ pay income taxes on the difference between the discounted price and the stock’s fair market value at the time of the stock grant.
Restricted Stock means that executives do not have any ownership control over the disposition of the stock for a predetermined period, often 5–10 years. Executives must sell the stock back to the company for exactly the same discounted price they had at the time of purchase if they terminate their employment before the end of the designated restriction period.
A phantom stock plan is a compensation arrangement whereby boards of directors promise to pay a bonus in the form of the equivalent of either the value of company shares or the increase in that value over a period of time.
Discount stock option plans are similar to non-statutory stock option plans with one exception. Companies grant stock options at rates far below the stock’s fair market value on the date the option is granted.
Stock appreciation rights provide executives income at the end of a designated period, much like restricted stock options; however, executives never have to exercise their stock rights to receive income.
Unions generally do not support companies’ use of contingent workers and flexible work schedules. Most union leaders believe that alternative work arrangements threaten members’ job security and are prone to unfair and inequitable treatment. The most common concerns include:
Employers exploit contingent workers by paying them lower wages and benefits than core employees. Employers’ efforts to get cheap labor

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